Hyderabad/Bengaluru — Cipla, India’s third-largest generic drugmaker by sales, announced an impressive performance for the first quarter of fiscal year 2024, surpassing market expectations. The company’s consolidated net profit surged by 18.3% to ₹11.78 billion ($140.8 million) for the quarter ending June 30, 2024. This result exceeded analysts’ forecasts of ₹11.10 billion, showcasing Cipla’s robust growth trajectory.
Following the announcement, Cipla’s shares experienced a significant boost, climbing 6.7% to reach an all-time high of ₹1,600. The company’s strong financial performance is attributed primarily to its success in the North American market. Sales in this region grew by 13% during the quarter, driven by Cipla’s respiratory drug Albuterol and Lanreotide, the generic version of Bristol-Myers Squibb’s high-profile cancer treatment drug, Revlimid.
The increase in revenue from North America was a major contributor to Cipla’s overall profit growth. This region, along with India, which is Cipla’s second-largest market, accounts for approximately three-fourths of the company’s total revenue. In India, Cipla saw a 10% increase in revenue, totaling ₹28.98 billion for the quarter. However, despite this strong performance, Cipla’s overall revenue growth of 7% slightly fell short of analysts’ expectations, who had projected an 8% increase. The shortfall was mainly attributed to a weaker performance in Cipla’s trade generics business within India.
Indian generic drugmakers, including Cipla, have been capitalizing on the strong demand for generic versions of Revlimid, which was launched in 2022. This has significantly bolstered sales in the U.S. market. Conversely, Bristol-Myers Squibb, the original manufacturer of Revlimid, is experiencing increased pressure due to competition from these generics, impacting its market share and sales of the drug.
The substantial profit growth and record-high share prices reflect Cipla’s successful strategic focus on high-demand products and expanding its market presence. Despite some challenges, particularly in the trade generics sector, Cipla’s performance in North America and India underscores its strong position in the global pharmaceutical industry.
This report was generated by Reuters and reflects the company’s financial status and market performance for the specified quarter.
SOURCE:
THE PRINT
